2 Cash-Heavy Stocks to Own for Decades and 1 We Turn Down

Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.

Not all businesses with cash are winners, and that’s why we built StockStory - to help you separate the good from the bad. That said, here are two companies with net cash positions that balance growth with stability and one with hidden risks.

One Stock to Sell:

Boston Beer (SAM)

Net Cash Position: $168.6 million (7.3% of Market Cap)

Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.

Why Does SAM Fall Short?

1. Muted 1.6% annual revenue growth over the last three years shows its demand lagged behind its consumer staples peers
2. Subscale operations are evident in its revenue base of $2.05 billion, meaning it has fewer distribution channels than its larger rivals
3. Forecasted revenue decline of 4.4% for the upcoming 12 months implies demand will fall off a cliff

Boston Beer’s stock price of $214.13 implies a valuation ratio of 23x forward P/E. Dive into our free research report to see why there are better opportunities than SAM.

Two Stocks to Buy:

Houlihan Lokey (HLI)

Net Cash Position: $316.5 million (2.4% of Market Cap)

Founded in 1972 and known for its expertise in complex financial situations, Houlihan Lokey (NYSE:HLI) is a global investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory services.

Why Is HLI a Good Business?

1. Annual revenue growth of 17.2% over the last five years was superb and indicates its market share increased during this cycle
2. Additional sales over the last two years increased its profitability as the 29% annual growth in its earnings per share outpaced its revenue
3. Annual tangible book value per share growth of 43.7% over the past two years was outstanding, reflecting strong capital accumulation this cycle

At $188.06 per share, Houlihan Lokey trades at 24.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

HCI Group (HCI)

Net Cash Position: $895.3 million (37.5% of Market Cap)

Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE:HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.

Why Is HCI a Top Pick?

1. Net premiums earned surged by 26.7% annually over the past two years, reflecting strong market share gains this cycle
2. Balance sheet strength has increased this cycle as its 63.4% annual book value per share growth over the last two years was exceptional
3. Capital strength will likely rise over the next 12 months as its expected book value per share growth of 23% is robust

HCI Group is trading at $184.24 per share, or 2.9x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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